The Wall Street Journal recently reported that the number of renters in the U.S. has reached 46 million—an all-time high. One of the biggest reasons behind this surge is the steep decline in first-time homebuyers.
Since 2021, the number of renters moving into homeownership has dropped far below the 20-year average of 2.1 million per year. Rising home prices and climbing interest rates are making it nearly impossible for many to purchase their first home. And even if prices and rates ease slightly, other major hurdles will keep this trend in place.
In short: bad news for new homebuyers means good news for apartment owners.
Detroit Housing Market Trends
Here in Metro Detroit, we’re seeing the same national trends play out. Home prices across the region have climbed steadily, while mortgage rates have pushed many potential buyers into the rental market. Inventory is low, competition is high, and affordability is a growing challenge for young professionals and families.
For real estate investors, this creates an ideal environment for multifamily opportunities. With demand for rentals in Detroit and surrounding suburbs stronger than ever, well-located apartments are experiencing high occupancy rates and rising rents, making the area especially attractive for both active and passive investors.
The Bigger Picture: Affordability Crisis
In 2024, first-time homebuyers fell by 27% compared to 2023, and numbers are now 48% below the 20-year average. The decline has only continued into 2025, with home sales hitting their lowest levels since the mid-1990s. Even homebuilders are reporting weaker numbers—sales in May were down 6% compared to May 2024, despite aggressive mortgage buydowns and other incentives.
At today’s prices and interest rates, buyers need to earn at least $127K per year to qualify for the median-priced home—up from $79K just four years ago. Yet only 13% of the 46 million U.S. renters even meet that income threshold.
Even among those who qualify, many are choosing renting as a lifestyle. Others are being shut out due to poor credit. In fact, the Federal Reserve of New York estimates 2.4 million income-qualified buyers can’t get a mortgage because of their credit scores—many of which took a hit when student loan payments resumed.
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Why This Matters for Detroit Investors
The WSJ predicts landlords will continue to be the big winners in this housing shake-up. With new apartment construction slowing and rental demand at record highs, both occupancy and rents are projected to keep climbing. In Metro Detroit, where new construction lags behind demand, this means investors have a chance to secure properties in strong locations and generate long-term cash flow.
With homeownership slipping further out of reach, a record 46 million Americans are now renting—and this trend shows no sign of slowing down. For multifamily investors in Detroit and nationwide, that spells one thing: a massive opportunity for lasting financial growth.
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